Brookfield Property Partners Could Go Private in $5.9B Bid

Brookfield Asset Management intends to buy the remaining units of its real estate subsidiary.
One Manhattan West. Image courtesy of Brookfield Properties Partners

Together with a group of investors, Brookfield Asset Management Inc. has announced it has made an offer to acquire the remaining shares of Brookfield Property Partners. The proposal comprises the purchase of the remaining units of the latter not already owned by Brookfield Asset Management Inc. for $5.9 billion, or $16.5 per outstanding unit.

Brookfield Asset Management already owns roughly 60 percent of Brookfield Property Partners, which at Thursday’s closing price was valued at $13.8 billion, Bloomberg reported. Each Brookfield Property Partners unitholder can choose between receiving $16.5 per unit in cash, 0.4 Brookfield Class A shares or 0.66 of preferred units with a liquidation preference of $25.00 per unit.  

Brookfield Property Partners’ portfolio consists of office, industrial, self storage, student housing, manufactured housing, multifamily, hospitality and triple net lease properties. This includes the 2 million-square-foot One Manhattan West and the roughly 2.5 million-square-foot Brookfield Place in Lower Manhattan’s 225 Liberty St.

In mid-December, Brookfield Asset Management entered into an agreement with Blackstone Property Partners Life Sciences to sell a 2.3 million-square-foot lab office space portfolio. The transaction is valued at around $3.4 billion.